Business Environment and International Business MCQs

Question 1

Which of the following is/are the assumptions of the Law of One Price? (i) Restriction on the movement of goods between countries (ii) No transportation costs (iii) No tariffs

Accepted Answer

Both (ii) and (iii)

Answer

Both (i) and (ii)

Answer

Only (i)

Answer

(i), (ii) and (iii)

Question 2

Match the following. List-I (Organisations of World Bank) List-II (Features) a. Board of Governors 1. Responsible for the conduct of the day to day business of the bank b. Board of Executive Directors 2. It meets annually to cheak out the general policy of the bank c. Advisory Council 3. It meet regularly once a month to carry on the routine working of the bank d. President and other members of staff 4. It is appointed by the Board of Directors

Accepted Answer

a-2, b-3, c-4, d-1

Answer

a-4, b-3, c-2, d-1

Answer

a-3, b-1, c-4, d-2

Answer

a-2, b-1, c-4, d-3

Question 3

Match the items given in List-I with the most appropriate items in List-II : List-I List-II a. UNCTAD 1. Foreign investment b. WTO 2. Developing Countries c. TRIMS 3. UNDP d. ITC 4. General Council

Accepted Answer

a-2, b-4, c-1, d-3

Answer

a-3, b-4, c-1, d-2

Answer

a-4, b-2, c-1, d-3

Answer

a-3, b-2, c-1, d-4

Question 4

Statement I: WTO is only international organisation which deals with the rules of trade between organisations. Statement II: The limit of holding by individual foreign institutional investors in a company has been raised from 5 to 10% of company's share while the aggregate limit has been increased from 24 to 34%.

Accepted Answer

Both the Statements I and II are correct

Answer

Statement I is correct, but Statement II is incorrect

Answer

Statement II is correct, but Statement I is incorrect

Answer

Both the Statements I and II are incorrect

Question 5

Consider the following statements:
1. Fiat money has no intrinsic value, while the legal tender is any currency declared legal by a government.
2. Government can issue fiat currency and make it legal tender by setting it as the standard for debt repayment.
Which of the statements given above is/are correct?

Accepted Answer

1 and 2

Answer

2 only

Answer

1 only

Answer

Neither 1 nor 2

Question 6

Consider the following statements. Assertion (A): The formal banking system was started after the entry of Britishers into India Reason (R): There was a loophole in the informal banking which was practiced in India

Accepted Answer

Both A and R are true but R is not a correct explanation of A

Answer

Both A and R are true and R is the correct explanation of A

Answer

A is true but R is false

Answer

A is false but R is true

Question 7

Consider the following actions which the Government can take:
(i) Devaluing the domestic currency
(ii) Reduction in the export subsidy
(iii) Adopting suitable policies which attract greater FDI and more funds from Flls
Which of the above action/actions can help in reducing the current account deficit?

Accepted Answer

(i) and (ii)

Answer

(ii) and (iii)

Answer

(iii) only

Question 8

Match the following. List-I List-II a. FOB basis 1. Means of international payment b. Official reserves 2. Price paid for insurance and shipment of goods should not be included as part of value of goods either by exporter or importer c. Balance of payment manual 3. Principles or concepts to be followed by countries while compiling BoP data to ensure consistency d. Bill of lading 4. Document of title of sale of goods

Accepted Answer

a-2, b-1, c-3, d-4

Answer

a-1, b-2, c-3, d-4

Answer

a-3, b-2, c-1, d-4

Answer

a-4, b-3, c-2, d-1

Question 9

The forces that lend momentum to the process of globalisation have been identified by Michael Porter include the following
1. Fluid global capital market
2. Technological restructuring
3. Decreasing religious command
4. Ethnic decontrol
5. New global competitors
6. End of the cold war in 1990s

Accepted Answer

6, 4, 2 and 1

Answer

6, 5, 4 and 3

Answer

6, 3, 2 and 1

Answer

4, 3, 2 and 1

List-I (Organisations of World Bank)	List-II (Features)
a. Board of Governors	1. Responsible for the conduct of the day to day business of the bank
b. Board of Executive Directors	2. It meets annually to cheak out the general policy of the bank
c. Advisory Council	3. It meet regularly once a month to carry on the routine working of the bank
d. President and other members of staff	4. It is appointed by the Board of Directors

List-I	List-II
a. UNCTAD	1. Foreign investment
b. WTO	2. Developing Countries
c. TRIMS	3. UNDP
d. ITC	4. General Council

List-I	List-II
a. FOB basis	1. Means of international payment
b. Official reserves	2. Price paid for insurance and shipment of goods should not be included as part of value of goods either by exporter or importer
c. Balance of payment manual	3. Principles or concepts to be followed by countries while compiling BoP data to ensure consistency
d. Bill of lading	4. Document of title of sale of goods